A paper recycling system having a dry defibrating unit that shreds recovered paper loaded into a shredder and defibrates the shredded paper, a first conveyance unit that conveys the defibrated material output by the dry defibrating unit, an air classifier that separates and deinks the defibrated material conveyed by the first conveyance unit, a second conveyance unit that conveys the defibrated material de-inked by the classifier, and a paper-forming unit that produces paper from the defibrated material conveyed by the second conveyance unit is known from the literature. (See, for example, PTL 1.)